ROBUST RETAIL SECTOR: CHALLENGES AND OPPORTUNITIES

Transcription

1 ROBUST RETAIL SECTOR: CHALLENGES AND OPPORTUNITIES Cold Chain & Warehousing Summit th April 2017, Bitec Bangna Speaker: Mr. Kevin Burrell Chief Executive Officer DHL Supply Chain Thailand, Vietnam, Myanmar, and Cambodia 1 MYANMAR RETAIL EXPO 2016 Logistics and Warehouse Solutions for Myanmar Retailer

2 CONTENT TREND OF GLOBAL RETAIL MARKET IN 2017 ASEAN RETAIL INDUSTRY OVERVIEW LOGISTICS SERVICE CHARACTERISTICS OUR SERVICES 2 MYANMAR RETAIL EXPO 2016 Logistics and Warehouse Solutions for Myanmar Retailer

3 TREND OF GLOBAL RETAIL MARKET IN MYANMAR RETAIL EXPO 2016 Logistics and Warehouse Solutions for Myanmar Retailer

4 E-COMMERCE Faster delivery, easier return policies, and many sites offering free shipping have increased the desirability of online buying. Global e-commerce market is worth $1.9 TRILLION (2016) 3.77 BILLION global internet users in 2017 Two Friends Turned Up The Heat and Sold $170k Worth of Spicy Honey in 10 Months via Online

5 OMNI CHANNEL deliver a seamless and consistent experience across different channels of devices that consumers are using to interact with business STARBUCKS REWARD APP To check and reload your card via phone, website, in-store, or on the app become possible now. Any change gets updated across all channels, in real-time

6 RETAIL EVERYWHERE No longer confined to traditional stores, retail is increasingly ubiquitous. Stores are also popping up in new and unexpected places, such as train stations and truck and bus stores. AMAZON DASH VIRTUAL SHELVES at train platforms AMAZON ECHO MOVABLE STORE

7 AUGMENTED REALITY Augmented reality applications will increasingly be used in retail environments to give consumers product information and help them interact with brands. AUGMENTED REALITY MAKEUP MIRROR PROMOTION POP UP VIRTUAL FITTING ROOM

8 SHIFTING DEMOGRAPHICS The world population is growing and changing, becoming older and more multicultural society 8 % of people worldwide (593 million) are aged 65 and over (2016) (MN) DUTCH SUPERMARKET S CHECKOUT STAFF OFFER IN- STORE CARE TO ELDERLY Spot signs of forgetfulness, loneliness or self-neglect by older customers, and guide them to health care volunteers in store World Population ages 65 and above +29.5%

9 Many retailers developing new store brands that adapt to smaller spaces URBANIZATION cities are now experiencing a resurgence. Shifting patterns of settlement have implications for infrastructure, people s lifestyles, and for consumer priorities and demands. IKEA offers water taxi service to its stores to attract urban consumers

10 AUTOMATION Now the grocery and retail industry is looking to get in on automation. When just a self-checkout stands have become standard, the industry is now looking for more ways to use tech to streamline shopping and minimize the need for human employees Selfdriving shopping carts AMAZON GO Grab & go! No lines, no check out TOUCHSCREEN KIOSKS which custom food can be built as well as full-menu ordering.

11 ASEAN RETAIL MARKET SITUATION

12 ASIA-PACIFIC REMAINS THE MOST DYNAMIC AMONG REGION ECONOMIES With the growth transition from China to other countries in the region C H A L L E N G E S Uncertainty of world economy i.e. trade agreement Infrastructure Efficiency of labor TECH-ENABLED CAPABILITIES HAVE BROUGHT STIFFER COMPETITION between TRADITIONAL and ONLINE retailers ASEAN COMPOUND ANNUAL GROWTH RATE (CAGR) PERCENT from 2010 to 2016 O P P O R T U N I T I E S Technology and connectivity expansion Rising income in the region (middle class) Global urbanization shift from rural to urban

13 M A R K E T A T T R A C T I V E N E S S POPULATION MN HOUSEHOLD DEBT Per GDP ANNUAL INCOME PER CAPITA (USD) GDP Growth RETAIL MARKET GROWTH RATE RETAIL MARKET VALUE (USD) % 6, % 2.60% 129 TN THAILAND % 5, % 9.10% 49 TN VIETNAM n/a 1, % 8.50% 12 BN MYANMAR n/a 1, % 7% n/a CAMBODIA

14 THAILAND M A R K E T SUPER SAVE by TOA The retail is growing continuously and slowly Many new players jumped into the market Emerging of new store format with different size and service level In 2016 Thailand s e-commerce is growing by 15 20% which amounted BN USD in revenues SPAR by Bangchak OPPORTUNITIES CHALLENGES ALL D by Villa Market & Perfect Property More demand for logistics service The operations must be tailored and customized Different transport mode brought to consideration BETAGRO by CPF

15 VINMART in Vietnam VIETNAM M A R K E T Store expansion - retailers are gradually shifting their focus from the capital to more provincial areas for greater opportunities. Local players are gaining a stronger foothold domestic players such as VinMart in Vietnam have been scaling up their operations and establishing leadership in their local markets. Neighborhood mini supermarkets emerged - These minisupermarkets are typically between 150 and 300 sqm in size and are located in residential areas Shift from traditional wet market to modern ones The Vietnamese e-commerce market stands at 4 BN USD. Lazada, the biggest e-player that currently claims 30% of Vietnam s online retail market OPPORTUNITIES CHALLENGES More demand for logistics service The operations must be tailored and customized Different transport mode brought to consideration

16 MYANMAR M A R K E T Largest modern retailer, City Mart, plans to double the number of its supermarkets, treble the number of its convenience stores and enter the E-Commerce sector Distribution coverage focus only in the city Poor inventory and warehouse operations quality Many players jumped into the market such as Capital and Aeon 90% - Traditional market 10% - Modern market CITYMART OPPORTUNITIES CHALLENGES CAPITAL Only few operators in the market Newly open market with high demand for good logistics service Underdeveloped infrastructure (Transportation, internet, banking, etc.) TRADITIONAL TRADE

17 CAMBODIA M A R K E T PARKSON S PHNOM PENH CITY CENTRE HONGKONG LAND S EXCHANGE SQUARE The arrival of new high-quality shopping malls, combined with growing domestic disposable income, will continue to act as key drivers for retailer entrants over the course of 2016 The opening of Parkson s Phnom Penh City Centre and Lion Centre shopping malls, as well as Hongkong Land s Exchange Square. Aeon Mall has announced plans to develop a second mall near Tuol Kork. This project is expected to be completed and opened by May OPPORTUNITIES CHALLENGES AEON MALL Only few operators in the market Newly open market with high demand for good logistics service Underdeveloped infrastructure (Transportation, internet, banking, etc.)

18 3PL CHARACTERISTICS

19 IT S COMPLEX AND WILL BECOME MORE! THE EVOLUTION OF RETAIL LOGISTICS (Based on non-food distribution in developed market) CONVENIENCE STORE HYPERMARKET SUPERMARKET TRADITIONAL

20 Many businesses are looking for 3PL who can provide the logistics as well as value-added service which cover the entire supply chain, and be able to deliver these characteristics LOWEST C O S T BETTER Q U A L I T Y VALUE GENERATING

21 AUTOMATION TRUCK DESIGN LOWEST C O S T OPERATIONS MANAGEMENT SYSTEM (OMS) LEAN CONTROL TOWER ROUTE PLANNING LABOR MANAGEMENT SYSTEM

22 VISUAL PICKING RFID SCANNER BETTER Q U A L I T Y VOICE PICKING TEMPERATURE CONTROL Technology application for streamline process System and procedure

23 VALUE G E N E R AT I N G Order management Multi-brand network Forecasting Inventory management Promotional packaging Product recall Promotional packaging Product recall Demanding planning Promotion support Shopfitting management Order Management / Demanding planning Shopfitting Multi-brand network Inventory management

24 OUR SERVICES

25 THANK YOU